The Bank was incorporated in 01-05-1915 and started functioning on 24-05-1915, Under the Madras Co-operative Societies Act 1904.The registered office was at Kannur, and the area of operation was Kannur Municipality and Cantonment. The first Director Board meeting was held on 24-05-1915.

In 1969, The Kerala Co-operative Societies Act came in to force and the Bank is now working under this act. In 1969, The Banking regulation Act was made applicable to primary co-operative societies and now the bank is working under the license and control of Reserve Bank of India